Watch this video about the short-run shutdown decision:

Saylor Academy. (2013, July 22). Short-run shutdown rule: Explained - Economics 101 [Video]. YouTube. 

Explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost. Also, provide an example (not from the video) of when a firm might face this decision. (Hint: Think about how fixed and variable costs may affect shut-down decisions.)

Remember to include citations and references